An economic theory is also known as an economic :

An economic theory is also known as an economic
 
  A) model.
  B) prediction.
  C) conclusion.
  D) assumption.

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Ques. 2

All of the following are possible explanations for the increase in U.S. government budget deficits as a percentage of GDP since the early 2001 EXCEPT
 
  A) increases in tax revenues.
  B) increases in payments for entitlements.
  C) increases in government spending.
  D) decreases in tax rates.

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Ques. 3

The transactions demand for money
 
  A) varies directly with nominal Gross Domestic Product (GDP).
  B) varies inversely with nominal Gross Domestic Product (GDP).
  C) varies negatively with real nominal Gross Domestic Product (GDP).
  D) has no relationship with nominal Gross Domestic Product (GDP).

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Ques. 4

In the classical model,
 
  A) unemployment will never exist since workers will be willing to accept lower wages and will then be able to find work.
  B) unemployment will never exist because employers will be willing to pay the wage rate demanded by the workers.
  C) wages will go up but never go down.
  D) full employment will never be reached.

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Ques. 5

Second-hand smoke, an often cited disadvantage of allowing smoking in restaurants, is referred to in economics as a(n)
 
  A) capital good.
  B) externality.
  C) economic cost.
  D) negative investment.